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You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for five years. Calculate the payment after recasting the loan (i. e., after the reset) assuming the interest rate after the initial lock period is 8.0%. (Note: the term on this 5/1 ARM is 30 years.)
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You have taken out a $300,000, 5/1 ARM. The initial rate of 5.4% (annual) is locked in for five year...
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